Measuring Unemployment

• To determine the unemployment rate, the U.S. Bureau of the Census (Census Bureau) conducts a monthly survey, called the Current Population Survey
• Employees of the Census Bureau interview a random sample of 60,000 households across the U.S., and this data is analyzed and published by the Bureau of Labor Statistics

• Individuals 16 and older are classified as employed if during the surveyed week...
  • They worked for pay or profit one or more hours
  • They worked without pay in a family business 15 or more hours
  • They have jobs but did not work as a result of illness, weather, vacations, or labor disputes
• If the people do not fit any of these criteria, and they have been searching for work for 4 or more weeks, they are classified as unemployed

• Unemployment rate: the percentage of people in the civilian labor force who are unemployed

• The unemployment rate does not include marginally attached workers, discouraged workers, or the underemployed
  • Marginally attached workers: people who have once held productive jobs but have given up looking for work

• Discouraged workers: people who want a job but have stopped looking for work for various reasons

• Underemployed: workers who have jobs beneath their skill level or who want full-time work but are only able to find part-time job

• Since an unemployment rate of 0% is impossible, full employment represents an unemployment rate of 5% or below

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